99-29982. Defense Federal Acquisition Regulation Supplement; Anticompetitive Teaming

[Federal Register Volume 64, Number 222 (Thursday, November 18, 1999)]
[Proposed Rules]
[Pages 63002-63003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29982]


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DEPARTMENT OF DEFENSE

48 CFR Part 203

[DFARS Case 99-D028]


Defense Federal Acquisition Regulation Supplement; 
Anticompetitive Teaming

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: The Director of Defense Procurement is proposing to amend the 
Defense Federal Acquisition Regulation Supplement (DFARS) to add policy 
addressing exclusive teaming arrangements. The proposed amendments 
specify that certain exclusive teaming arrangements may evidence 
violations of the antitrust laws.

DATES: Comments on the proposed rule should be submitted in writing to 
the address specified below on or before January 18, 2000, to be 
considered in the formation of the final rule.

ADDRESSES: Interested parties should submit written comments on the 
proposed rule to: Defense Acquisition Regulations Council, Attn: Ms. 
Melissa Rider, PDUSD(AT&L)DP(DAR), IMD 3D139, 3062 Defense Pentagon, 
Washington, DC 20301-3062. Telefax [phone]. Please cite DFARS 
Case 99-D028.
    E-mail comments submitted via the Internet should be addressed to: 
[e-mail]
    Please cite DFARS Case 99-D028 in all correspondence related to 
this proposed rule. E-mail correspondence should cite DFARS Case 99-
D028 in the subject line.

FOR FURTHER INFORMATION CONTACT: Ms. Melissa Rider, [phone]. 
Please cite DFARS Case 99-D028.

SUPPLEMENTARY INFORMATION: 

[[Page 63003]]

A. Background

    This proposed rule amends DFARS Subpart 203.3 to add a definition 
of ``exclusive teaming arrangement'' and to specify that certain 
exclusive teaming arrangements may evidence violations of the antitrust 
laws. Teaming arrangements that inhibit competition limit the 
Government's ability to obtain the best products at reasonable prices.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    The proposed rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because DoD does 
not expect frequent use of anticompetitive teaming arrangements by 
contractors or subcontractors. Therefore, an initial regulatory 
flexibility analysis has not been performed. Comments are invited from 
small businesses and other interested parties. Comments from small 
entities concerning the affected DFARS subpart also will be considered 
in accordance with 5 U.S.C. 610. Such comments should be submitted 
separately and should cite DFARS Case 99-D028 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Part 203

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Part 203 is proposed to be amended as follows:
    1. The authority citation for 48 CFR Part 203 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

    2. Sections 203.302 and 203.303 are added to read as follows:


203.302  Definitions.

    ``Exclusive teaming arrangement'' means that two or more companies 
agree, in writing, through understandings, or by any other means, to 
team together on a procurement and further agree not to team with any 
other competitors on that procurement.


203.303  Reporting suspected antitrust violations.

    (c) Practices or events that may evidence violations of the 
antitrust laws also include exclusive teaming arrangements, if one or a 
combination of the companies participating on the team is the sole 
provider of a product or service that is essential for contract 
performance, and efforts to eliminate the arrangements are not 
successful.

[FR Doc. 99-29982 Filed 11-17-99; 8:45 am]
BILLING CODE 5000-04-M